Crane Corporations master budget for the year is shown below:

Sales (62,000 units)		$ 2,294,000
Cost of goods sold:
Direct materials	$ 198,400
Direct labor	502,200
Overhead (variable overhead applied at 30% of direct labor cost)	260,000	960,600
Gross profit		$ 1,333,400
Selling expenses:
Sales commissions (all variable)	$ 166,222
Rent (all fixed)	60,000
Insurance (all short-term fixed)	50,000
General expenses:
Salaries (all short-term fixed)	102,000
Rent (all short-term fixed)	87,000
Depreciation (all short-term fixed)	70,000	535,222
Operating income		$ 798,178

Required:

1. During the year, the company manufactured and sold 57,000 units of product. Prepare a flexible budget for this level of output.

2. Now suppose that the actual level of output was 67,000 units. Prepare a flexible budget for this output level.